Ann: Share Purchase Plan Heavily Oversubscribed, page-212

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Snorlax88

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26/11/21

12:11

Post #: 57878723
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Originally posted by leezy91: ↑

The worst that should happen is $51,36M leaves the stock as people rinse their holdings
IE sell what they acquire
The fact $50M has left the stock straight off the bat this morning is interesting,
It means that there are shareholders leaving the stock who do not believe FFX will generate $50M of value from this raise.
I would have expected some money to leave the stock today, and some to leave upon the issue of shares as people manage their holdings.

The Math;

MC is $661.5 at the time of annoucement
Share price 70.5c
MC assuming all shares or equivalent are disposed of (pre share issue)- $610.14M
Share price at this Market cap is 65c
MC assuming all share or equivalent are disposed of (post share issue) - $661.5M
Share price at this market cap with dilutes shares added is also 65c

If the SP drops below 65c, then there is definitely a sentiment change from some shareholders
If you believe the money raised will be put to good use, and your sentiment has not changes, i think the stock presents a buying opportunity at 65c & below.
I would expect the SP to hold up reasonably well here, at least prior to the issue of shares.

Not financial advice,
MOO, DYOR & MYOD
Happy Trading
- Leezy

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I picked up more outside my SMSF at 65c because I didn';t have any more $$ in the super to take up full SPP.
The dilution doesnt matter if it adds value to the Company.
The money raised withh be used for Morilla and Leo which will add value to the Co.. hence, its ok..
Will pick up more if it drops more to 60c

FFX Price at posting: 65.0¢ Sentiment: Buy Disclosure: Held
12 Upvote

0 Great analysis

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Ann: Share Purchase Plan Heavily Oversubscribed, page-212

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